Bad debt: refers to those that have passed the repayment period, cannot be recovered after collection, are in a sluggish state for a long time, and may become bad debts. Bad debts are the result of not clearing the accounts in time, and also refer to the finance that can't be collected because the other party doesn't pay back. Simply put, it is an account that has not been paid off for a long time.

The formation and identification of bad debts;

For debts that cannot be recovered after repeated collection (including the case of losing contact), the identification of bad debts needs to be reported to the higher authorities for approval.

The impact of bad debts on us:

Because bad debts are a serious overdue situation in Credit Insurance (much more serious than general overdue), as long as credit insurance keeps bad debts, it is impossible to handle banking business and card loans. If you don't deal with bad debts, you will follow them for a lifetime. In some cases, even if the debts are paid off, the bad debts in letters and newspapers will remain.

Cancellation process (good records should be kept for 24 months):

1. Submit personal data and inquire about personal credit report;

2. Put forward personal credit objection, and the bank applies for objection;

3. Fill in the Application Form for Objection to Personal Credit Report, and then the commercial bank will submit the corrected personal credit report;

4. Wait for the "Personal Credit Report Objection Reply" from the credit reporting department. If there is no problem, it can be cleared within 5 working days.